Trump’s Tariff Letters Rattle Markets, Safe-Haven Flows Emerge

President Trump's impending tariff letters—slated for delivery before July 9—have injected volatility into global markets. The measures, targeting trade partners with duties as high as 70%, threaten to disrupt the bullish momentum fueled by recent economic optimism. Investors are swiftly repositioning, with Gold gaining traction as a hedge while equities and the dollar waver.

The policy shift arrives at a fragile juncture. Markets had climbed to record highs on stimulus hopes and robust U.S. data, but now face a potential inflection point. Overbought conditions compound the risk of a sharp reversal, particularly for sectors exposed to cross-border trade flows. Trump's preference for unilateral action over protracted negotiations leaves little room for market adaptation.

Cryptocurrencies remain conspicuously absent from the immediate reaction—a notable divergence from previous risk-off episodes where digital assets often mirrored gold's trajectory. The absence of direct tariff implications for crypto markets may temporarily insulate BTC and major altcoins, though contagion risk lingers should equity outflows accelerate.